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At Vanguard, not only are the assets owned by the shareholders. The manager itself is owned by the funds, and therefore by the shareholders.

That's not the case for a typical hedge fund.



That creates some interesting situations like charging too little:

“VGI provides services to the Funds “at cost”, i.e., without charging an arm’s length profit. VGI is a C corporation and the Funds are Regulated Investment Companies (RICs) not taxable at the corporate level, so this situation results in avoidance of billions of corporate taxes.”

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2666426




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